Startup in Focus

Phonic: Building Speech-to-Speech AI for Real-Time Voice Agents

Phonic develops speech-to-speech AI models and infrastructure for voice agents that need to understand callers, respond naturally, and execute tasks during live conversations. Its Phonic-1 model is designed to combine conversational quality, low latency, multilingual support, and tool use for production voice applications.

By Team Agent Unfolded · Last updated: November 2, 2026

Voice AI AI Agents Speech-to-Speech Models Series A
Visit Phonic ↗
$31.5M Total Funding Announced Includes the $27.5M Series A announced in October 2026
50+ Supported Languages Designed for multilingual voice conversations
2026 Phonic-1 Launch Announced October 29, 2026

Phonic at a Glance: Company Overview

Phonic is an AI company focused on speech-to-speech models for voice agents. Rather than treating a phone conversation as a sequence of transcription, text reasoning, and speech generation steps, Phonic builds models that process audio as a native input and produce spoken responses. The company aims to make automated conversations feel more natural while retaining the ability to reason, use tools, and complete complex tasks.

The company’s product is intended for organizations that need more than a scripted voice bot. Examples include customer support teams, healthcare providers, recruiting platforms, and logistics businesses where an agent may need to understand a request, retrieve information from another system, make a decision, and respond without creating unnecessary pauses.

On October 29, 2026, Phonic announced Phonic-1 alongside a $27.5 million Series A funding round. The company said it had raised $31.5 million in total. It also reported that its technology was being used by companies including Ashby, Maven AGI, Rho, and a Fortune 50 IT infrastructure company.

CompanyPhonic
IndustryArtificial intelligence, voice AI, conversational agents
Core TechnologySpeech-to-speech AI models and voice-agent infrastructure
Flagship ModelPhonic-1
Co-foundersMoin Nadeem and Nikhil Murthy
HeadquartersNot specified in the company information referenced for this profile
Latest Announced Funding$27.5 million Series A
Total Announced Funding$31.5 million
Series A Lead InvestorFirst Round
Other Announced InvestorsLux Capital, Felicis, Definition, and Essence VC
Official Websitephonic.ai
DocumentationPhonic developer documentation

What Does Phonic Do?

1. Builds Audio-Native AI

Phonic’s speech-to-speech approach processes a caller’s audio directly instead of relying entirely on a chain of separate transcription, language-model, and text-to-speech components. This helps preserve conversational cues such as tone, hesitation, and timing.

2. Powers Task-Oriented Voice Agents

The platform is designed for agents that do real work during a conversation. They can retrieve information, call connected tools, follow business instructions, and help complete workflows such as interviews, patient intake, or customer service requests.

3. Supports Production Deployments

Phonic provides APIs, software development kits, telephony options, integrations, and deployment configurations intended to help teams move from a voice prototype to a production service.

Phonic Products and Key Capabilities

Phonic-1 Speech-to-Speech Model

Phonic-1 is the company’s flagship model for voice-agent tasks. It is designed to listen to callers and generate spoken responses while supporting reasoning and tool use. Phonic announced the model on October 29, 2026.

Real-Time Tool Calling

Agents can initiate tool calls while the caller is still speaking. This can allow an agent to begin checking a booking, retrieving an account record, or gathering information before the caller finishes their request.

Multilingual Conversations

The model is trained on more than 50 languages. Phonic says agents can switch languages during a conversation while maintaining the same speaker identity, making the platform relevant to businesses serving multilingual customers.

Natural Turn-Taking

The system is designed to handle interruptions, conversational pauses, tone, and hesitation. These capabilities matter in live calls, where callers may change direction, speak over an agent, or provide information in an unexpected order.

APIs and Developer Tools

Developers can build with Phonic through its API, TypeScript and Python SDKs, command-line interface, and no-code agent builder. The platform provides configuration options for agent instructions, tools, voices, language settings, and deployment.

Deployment and Integration Options

Phonic supports integrations through webhooks and WebSockets, as well as connections with existing voice infrastructure. Enterprise deployment options include dedicated infrastructure, VPC connectivity, and self-hosting options subject to the applicable plan.

How Phonic’s Voice AI Works

Phonic combines audio-native modeling with tools, instructions, and deployment infrastructure. Businesses define the tasks an agent should handle, connect the systems it needs to access, and configure how it should communicate with callers.

1. Receive Live Audio

The agent receives the caller’s speech through a supported phone connection or application interface. The audio-native approach is designed to retain information in delivery and timing that may be lost when a conversation is reduced to text alone.

2. Interpret the Request

The model interprets the caller’s request in the context of the conversation and the instructions provided by the business. This can include recognizing intent, responding to clarifications, and handling interruptions.

3. Use Connected Tools

When an action is needed, the agent can call configured tools, APIs, functions, or supported MCP servers. These connections allow the agent to retrieve information or initiate approved operations in external systems.

4. Prepare the Response

The agent uses the available conversation context and tool results to formulate its next response. Phonic’s design aims to reduce unnecessary waiting by allowing tool activity to begin before the caller has finished speaking.

5. Speak Naturally

The model generates spoken output. Developers can configure the voice and other interaction settings to suit the use case, while the model is designed to handle conversational timing and multilingual exchanges.

6. Evaluate and Improve

Teams can refine instructions, tool behavior, configuration, and evaluation processes as they observe agent performance. This provides a way to improve the handling of edge cases and align responses with business requirements.

Enterprise Use Cases for Phonic

Customer Support

Voice agents can help with order updates, booking changes, account questions, refunds, and other support workflows. Agents can retrieve relevant records and escalate cases when a human representative is needed.

Healthcare and Patient Intake

Healthcare organizations can use voice agents to collect intake information, confirm appointments, reschedule visits, and route urgent requests to appropriate staff. Deployments must be configured around clinical workflows and privacy obligations.

Recruiting and Interviews

Recruiting platforms can use voice agents to conduct structured interviews, ask follow-up questions, and capture candidate responses. Phonic identifies Ashby as a customer and says its technology powers AI interviews across 25 countries for the company.

Logistics and Dispatch

Logistics teams can automate routine calls involving delivery updates, scheduling, dispatch coordination, and shipment questions. Connected tools can help an agent access operational data while keeping the conversation moving.

Research Interviews

Voice agents can conduct structured research conversations, ask neutral follow-up questions, and collect qualitative feedback. Teams can define interview rules and connect the agent to workflows for recording and organizing responses.

Reservations and Scheduling

Agents can help callers check availability, gather required details, and complete reservation or scheduling workflows through connected tools. Their ability to manage interruptions and clarify requests is useful for conversations with several steps.

What Differentiates Phonic?

Phonic focuses on the speech model itself rather than positioning the product only as a system for connecting multiple voice technologies. Its approach is intended to reduce the complexity of voice-agent stacks while supporting natural conversations and practical task completion.

CapabilityPhonic’s ApproachWhy It Matters
Audio ProcessingSpeech-to-speech model that works directly with audioCan preserve vocal cues such as tone and hesitation that may be lost in transcripts
Tool UseCan begin tool calls while a caller is still speakingMay reduce waiting time for tasks that require external information
Conversation QualityDesigned for turn-taking, interruptions, and natural deliverySupports more fluid conversations than rigid question-and-answer flows
LanguagesMore than 50 supported languagesHelps businesses serve customers across languages and regions
Developer AccessAPI, SDKs, CLI, and no-code builderOffers different routes for developers and teams building voice applications
Production DeploymentCloud, dedicated infrastructure, VPC connectivity, and self-hosting optionsGives organizations deployment choices based on operational and security needs
Pricing ModelConversation-minute pricing, with enterprise plans availableCan simplify cost estimation compared with managing separate model and infrastructure bills

These are product positioning points based on Phonic’s published documentation. Actual performance, cost, and quality will depend on the use case, configuration, integration design, and evaluation conditions.

Pricing and Plans

Phonic uses a conversation-minute pricing model and advertises plans for developers, growing teams, and enterprise customers. Its pricing page lists monthly subscriptions and per-minute rates, with custom terms for enterprise deployments. Prices and plan limits can change, so organizations should check the live pricing page before budgeting.

Starter

The published pricing page lists a $0 monthly subscription with $30 in monthly credits. The page lists a conversation rate of $0.14 per minute, along with workspace seats, voice options, agents, and concurrent-call limits.

View current Starter pricing ↗

Pro

The published Pro plan is listed at $240 per month, with $240 in monthly credits and a lower per-minute rate than Starter. It also provides higher limits for workspace seats, agents, and concurrent calls, plus private Slack Connect support.

View current Pro pricing ↗

Enterprise

Enterprise pricing is customized. The published offering includes options such as on-premises or VPC deployment, custom terms for data-processing and service-level agreements, HIPAA-related business associate agreements, audit logs, and implementation support.

Contact Phonic for enterprise pricing ↗

Pricing shown here reflects the information available on Phonic’s published pricing page when this profile was prepared. Confirm rates, included credits, concurrency limits, and contract terms directly with the company before making a purchasing decision.

Security, Privacy, and Deployment

Voice-agent deployments can process personal information, account details, healthcare information, and other sensitive conversation data. Security and data handling therefore matter alongside latency and voice quality.

SOC 2 Type II

Phonic states that its platform is SOC 2 Type II certified. Enterprise buyers should review the company’s trust materials and applicable reports as part of their vendor assessment.

Healthcare Workflows

Phonic advertises HIPAA support with a business associate agreement available for applicable enterprise arrangements. Organizations should confirm the scope of coverage and configure their own workflows accordingly.

Data Retention

The developer documentation describes zero-data-retention availability. Buyers should confirm which services and configurations qualify, what data is processed, and which retention settings apply to their account.

Deployment Choices

Options listed by Phonic include its cloud service, single-tenant infrastructure, VPC peering, and self-hosting for enterprise customers. Availability and implementation requirements may vary by plan.

Reliability

Phonic advertises a 99.99% uptime SLA on its website. Enterprise customers should review the contractual SLA, service exclusions, support terms, and incident-management process rather than relying on a headline figure alone.

Responsible Integration

Companies deploying voice agents should set clear rules for identity verification, consent, escalation, sensitive data, and actions that require human approval. These controls depend on the customer’s implementation and are not automatically guaranteed by model capability.

Phonic Funding History and Investors

Phonic announced $31.5 million in total funding following its Series A in October 2026. The company has disclosed the size of its latest round and several participating investors, but a company valuation was not stated in the announcement referenced for this profile.

October 29, 2026
Series A
$27.5M

Led by First Round, with participation from Lux Capital, Felicis, Definition, and Essence VC.

Phonic announced $31.5M in total funding to date.
Earlier funding
Pre-Series A capital
$4M*

The difference between the reported total funding of $31.5M and the $27.5M Series A is approximately $4M.

*Calculated difference, not a separately verified round amount.
October 2026
Strategic Angel Backers
Undisclosed

Named backers include Erik Bernhardsson, Clement Delangue, Arash Ferdowsi, Amjad Masad, Gokul Rajaram, Guillermo Rauch, Naval Ravikant, and Qasar Younis.

Individual investment amounts were not disclosed.

The company says the new funding will help scale speech-to-speech AI in production. Its announcement emphasizes model research, inference optimization, infrastructure, and close work with customers building real-world voice applications.

Founders and Team

Moin Nadeem

Co-founder and CEO

Nadeem is a generative AI and machine learning researcher. Phonic’s company profile says he was the eighth employee at MosaicML, which was acquired by Databricks, and holds bachelor’s and master’s degrees in computer science from MIT.

Nikhil Murthy

Co-founder and CTO

Murthy previously worked at NVIDIA, Intel, and Genesis Therapeutics, where he led a foundation-model team focused on structure prediction. Phonic says he earned bachelor’s and master’s degrees in engineering and computer science from MIT.

Research and Engineering Team

Phonic describes its team as researchers and engineers from MIT, Stanford, and Carnegie Mellon University, including former founders and International Olympiad medalists. The company works across model training, inference optimization, infrastructure, and customer deployment.

Customers and Market Traction

Phonic says its technology powers calls across six continents and identifies customers and users across recruiting, customer support, healthcare, and enterprise software. These examples offer an indication of the types of workflows the company is targeting, although the company has not published a complete customer list or independently audited revenue figures in the sources referenced here.

Ashby

Phonic says it powers AI interviews for Ashby across 25 countries. Ashby has publicly described the model’s voice quality and readiness for production as important to its candidate-interview experience.

Maven AGI and Rho

Phonic names Maven AGI and Rho among the companies using its technology. The funding announcement does not disclose detailed contract values or usage figures for these customers.

Enterprise Deployments

The company also refers to a Fortune 50 IT infrastructure company using its technology. The customer’s name and the financial terms of the engagement were not disclosed in the announcement.

Phonic also reports that teams moving from assembled voice stacks have seen improvements in customer satisfaction and their ability to handle complex tasks. These are company-reported outcomes; organizations evaluating the platform should test performance against their own baseline and call scenarios.

Phonic FAQs

1. What is Phonic?

Phonic is a voice AI company that builds speech-to-speech models and infrastructure for conversational AI agents. Its platform is designed for applications that need natural spoken interaction, real-time reasoning, and the ability to call tools.

2. What is Phonic-1?

Phonic-1 is the company’s flagship speech-to-speech model for agentic tasks. It is designed to listen to audio, respond in natural speech, support multilingual conversations, and initiate tool calls while a caller is still speaking.

3. How much funding has Phonic raised?

Phonic announced a $27.5 million Series A on October 29, 2026, bringing its reported total funding to $31.5 million. First Round led the round, with participation from Lux Capital, Felicis, Definition, and Essence VC.

4. Who founded Phonic?

Phonic was co-founded by Moin Nadeem, its CEO, and Nikhil Murthy, its CTO. Both have backgrounds in machine learning and AI research, with experience at organizations including MosaicML, NVIDIA, Intel, and Genesis Therapeutics.

5. How is speech-to-speech AI different from traditional voice bots?

Many conventional voice systems use separate components for speech recognition, language-model reasoning, and speech generation. Speech-to-speech models work directly with audio input and produce audio output, potentially retaining more conversational information and reducing the number of components required.

6. Can Phonic agents take actions during a call?

Yes. Phonic supports tool calling, allowing agents to retrieve information or invoke connected functions and systems. Its Phonic-1 announcement highlights the ability to begin tool calls while the caller is still talking. Actual actions depend on the tools and permissions configured by the developer.

7. Which languages does Phonic support?

Phonic says Phonic-1 is trained on more than 50 languages and can switch languages during a conversation while retaining the same speaker identity. Performance should still be tested for the specific languages, accents, and terminology relevant to a deployment.

8. What businesses can use Phonic?

Potential applications include customer service, recruiting, healthcare intake, logistics, user research, reservations, and scheduling. The platform is most relevant where voice agents need to manage multi-step conversations and connect to business systems.

9. How much does Phonic cost?

Phonic publishes Starter and Pro plans with conversation-minute pricing and offers custom enterprise pricing. Rates, monthly credits, concurrency limits, and included features can change, so check the official pricing page for current terms.

10. Does Phonic support enterprise security requirements?

Phonic advertises SOC 2 Type II, HIPAA support with a business associate agreement available, zero-data-retention availability, and multiple deployment options. Buyers should review the applicable documentation and confirm that their selected configuration meets internal and regulatory requirements.

11. Which companies use Phonic?

Phonic names Ashby, Maven AGI, Rho, and a Fortune 50 IT infrastructure company in its funding announcement. It also lists Assort Health on its website. Public information about individual customer contracts and usage volumes is limited.

12. What makes Phonic different from voice-agent platforms?

Phonic focuses on its speech-to-speech models and their ability to combine natural conversation with reasoning and tool use. It also offers APIs, developer tools, integrations, and deployment infrastructure so teams can incorporate the models into existing voice applications.

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